Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates

For the three and nine months ended September 30, 2021 and 2020, pre-tax income (loss) attributable to our operations and the corresponding operations’ effective tax rates were as follows:


	For the Three Months Ended September 30,
	2021					2020
(in millions)	Pre-Tax Income (Loss)			Effective Tax Rate		Pre-Tax Income (Loss)			Effective Tax Rate
Bermuda	$	7.2		—	%	$	5.5		0.1	%
United States	21.4			26.8	%	7.2			3.1	%
United Kingdom	(6.1)			(1.0)	%	(38.1)			9.7	%
Barbados	—			—	%	—			—	%
Belgium	—			—	%	0.2			22.8	%
Brazil	5.9			—	%	0.3			—	%
United Arab Emirates	0.9			—	%	0.4			—	%
Ireland	—		(1)	—	%	—		(1)	—	%
Italy	0.2			—	%	(0.9)			—	%
Malta	(1.3)			—	%	(1.1)			—	%
Switzerland	—		(1)	—	%	—		(1)	1.0	%
Pre-tax income (loss)	$	28.2		20.6	%	$	(26.5)		12.9	%

(1) Pre-tax income (loss) for the respective year was less than $0.1 million.


	For the Nine Months Ended September 30,
	2021					2020
(in millions)	Pre-Tax Income (Loss)			Effective Tax Rate		Pre-Tax Income (Loss)			Effective Tax Rate
Bermuda	$	14.5		—	%	$	(49.1)		—	%
United States	126.7			20.7	%	62.5			21.3	%
United Kingdom	(14.9)			68.4	%	(65.7)			9.9	%
Barbados	—		(1)	—	%	—			—	%
Belgium	—			—	%	0.2			25.3	%
Brazil	9.8			—	%	3.2			—	%
United Arab Emirates	1.2			—	%	1.8			—	%
Ireland	(0.1)			—	%	(0.1)			—	%
Italy	1.4			—	%	0.7			—	%
Malta	(0.4)			—	%	0.2			—	%
Switzerland	(0.1)			—	%	—		(1)	—	%
Pre-tax income (loss)	$	138.1		11.7	%	$	(46.3)		(14.8)	%

(1) Pre-tax income (loss) for the respective year was less than $0.1 million.

Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate

A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows:


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2021		2020			2021		2020
Income tax provision at expected rate	$	5.6	$	(6.5)		28.4		2.8
Tax effect of:
Nontaxable investment income	(0.1)		(0.2)			(0.4)		(0.5)
Foreign exchange adjustments	0.2		0.7			(0.3)		0.1
Goodwill	—		—		(1)	—		1.0
Withholding taxes	—		—		(1)	0.1		0.1
Prior period adjustments	—		0.9			—		0.9
Change in uncertain tax position liability	(0.4)		—			(2.3)		—
Change in valuation allowance	0.8		1.2			(1.1)		1.2
Impact of change in tax rate related to Finance Act 2021	—		—			(7.4)		—
Other	(0.3)		0.5			(0.9)		1.3
Income tax provision (benefit)	$	5.8	$	(3.4)		$	16.1	$	6.9

(1) Tax effect of the adjustment for the respective year was less than $0.1 million.